All Forum Posts by: Roy Oliphant

@Geoffrey Wilson

There is a significant difference between investing in tax liens and tax deeds.  You need to decide what fits your investment strategy before jumping in.  With tax liens, you are generally focusing on a financial instrument; tax deeds, by definition, make you a property owner/landlord. 

We do a lot of tax deeds in Texas.  It is certainly more competitive than it was a few years ago but deals can still be found.

@Jacob Pereira

Yeah, but Austin is just Weird.  It has been rated as one of the most overpriced cities in the nation for the last several years, and still more people are moving in that moving out so things just get pricier.  70,000 college students and the state's politicians and power brokers all sharing the same space.  It really is one of the neatest places to visit. 

No personal state income tax, a legislature that only meets part time, generally low cost of living, etc.  Several projections have Texas population doubling in the next 25 years.  Fortunately road building here is generally cheap since because if that happens we are likely to see Dallas suburbs all the way to Oklahoma.

@Chelle Knijnenburg

One thing you may want to consider is density.  The East townhomes are actually a pretty low density development.  See what you can find out about the new developments.  Most that I've seen in the area are higher density making the East something special from the west.  Either way it is a great area to be in.  One specific niche in the Corporate housing idea (great idea for that area) is contract nurse housing.  With the medical centers around that area and most of them in North Texas having nurse and other professional staffing shortages, contacting a few augmentation firms may be a good idea.  The convenience of that area would certainly appeal to that cohort.

@Sameer Kh

In our experience, the 4th bedroom usually has more value than a garage as buy and hold owners. However, you mentioned an HOA. Be sure to check with them about parking restrictions. The conversion may have been approved but a family looking to rent a 4 bedroom may have teenage kids and need more than 2 cars in the driveway. If street parking is forbidden by the HOA, this could be an issue.

Motivated sellers in LaredoZapata area?  One has to wonder why.  Still, opportunities are where you find them.  What would be the strategy for an investor here?  Help to define that and your potential investor community gets much larger.

Austin is a bit more like San Francisco than DFW as there are topographic challenges to territorial expansion. Still, I don't understand why Georgetown is more desirable than Buda (ok, I actually do) and why the whole area isn't Austantonio.   Still, with the worlds greatest racing facility, I understand why Austin is such a desirable place.  That is the only reason, right?

@Michael Watts

What would you want the outsourcing company to provide? 

BTW.. noticed you are from Mobile.  How is the market there?

@George Smith

20K/Mo Rev, 5K/Mo in Exp, Net = 15K  Max value at 8% is about 2.2M less any deferred maintenance.  But you also need to make sure of your management, vacancy and maintenance costs.  Plus if the tax role says $750K and you pay 3 times that, you might expect the taxes to adjust upward and by enough to make the whole deal need a recalc.

@Michael D.

I am not a CPA and you need specific tax advice regarding this.  However, if you put the max in (18K) wait for the match (9K) and then borrow 12K (27K*45%), you have 2/3 of your money for RE investment, you are leveraging the 401K return to 150% of your investment (9K match on net 6K Investment) and you have enough from the match to cover taxes and penalties if you cant pay the loan back when your RE investments are paying so much money you don't have to work anymore (LOL!!!)

Seriously, a guaranteed 50% return on your investment in the first year for doing nothing but saving the money? Plus don't forget the tax deferral on that income that you would have to pay if you don't do the 401k. I don't know how you risk that for the joys of RE investing. Build the 401K and convert it to an IRA when you change jobs in a few years.

Just one man's opinion.